QUT School of Business HDR Research Proposal: Investment and Culture

This research proposal, prepared for a Higher Degree Research application at QUT, investigates the impact of personal characteristics and cultural expectations on investment decision-making within the field of behavioral finance. The proposal outlines a research problem concerning the influence of investor personality and cultural background, supported by a literature review that examines the effects of personal traits and cultural norms on investment choices. The research aims to analyze this impact, identify potential advantages and disadvantages, and recommend strategies to mitigate any drawbacks. The methodology includes an interpretivism approach, an inductive research approach, and a questionnaire method for data collection, supported by case studies, published journals, and articles. Theoretical frameworks such as the theory of behavioral finance, the theory of reasoned action, and the theory of planned behavior will be used to analyze the research questions. The proposal also includes a timeline for conducting the research and emphasizes the significance of the study in understanding and improving investment strategies. The research aims to provide recommendations for investors to make rational and informed investment decisions, considering their risk-taking capabilities and personal objectives.

Applicant’s name Click or tap here to enter text.
QUT Student ID (if applicable) Click or tap here to enter text.
Degree Choose an item.
School Choose an item.
Proposed Principal supervisor’s name Click or tap here to enter text.
1. Research Project Title
This is the working / draft title for the project.
To analyse the impact of personal characteristics and cultural expectations in investment and decision
making.
2. Research Project Summary
Provide a brief overview of the project, similar to an abstract, or executive summary.
In the research proposal presented below, the research that will be conducted in order to achieve the
intended aim of analysis of the impact that personal characteristics and cultural traits has on the
investment and decision making of the investors studying the field of behavioural finance. In the
current proposal, a research problem has been formulated based on which literature review has been
conducted. Further this research proposal also includes formulation of research aims and research
questions that are to be addressed in the intended research followed by identification of the
theoretical frameworks that will be used in the research (Blajer-Gołębiewska, Wach and Kos,2018).
This is followed by research methodology which details the various tools and techniques that will be
used by researcher to conduct his research and this is followed by justifying the significance of
conducting this research and its importance i.e. contribution. Lastly, a timeline related to the
conducting of entire research will be presented in the research proposal.
of Business
HDR RESEARCH PROPOSAL TEMPLATE
Instructions:
1. Writing a research proposal is a requirement for application to Higher Degree Research at QUT.
2. This template may be used as a suggested format for your Research Proposal for Application. You do not
have to use this template, however it is recommended that you structure your research proposal
according to the following sections and headings.
3. It is recommended that you prepare your Research Proposal electronically using a clear and legible font
size and adhere to the word / page limit indicated.
4. Overall word limit: No set word limit, however 5 to 6 pages is recommended.

3. Research Problem
Using references to existing research, identify the current research problem or challenge that is the intended
focus of your proposed research.
In this research proposal, the main problem that I will address is how different personality
characteristics and the cultural expectations of the investors and financers impact their decision
making. The different aspects of the personality and culture of an investor will be observed and how
their decision making gets impacted due to such cultural and personality’s influences will be discussed
in this research proposal. What are the possible solutions to meet such influences will be further
addressed in this report. The problems to be addressed are:To identify the concept of personal
characteristics and cultural expectations.To determine the impact of such characteristics and
expectations on the decision making of investors.To identify the potential advantages or
disadvantages of this impact on decision making.To recommend proper strategies to meet out such
drawbacks or challenges.
4. Project (research topic) details
Provide a brief statement under each of the headings below.
1.1. Literature Review
Provide a brief review of the literature for the area of research interest. This sets the scene and context for the
research topic. It should define the problem, its causes, its extent and its significance. Ensure the literature
review is grounded in the academic literature and includes citations.
Literature review helps a researcher In identifying and analysing the past research that has been
conducted and formulating the best approach in conducting his research which will further add on in
the field.Theme 1: Influence of personal characteristics and Cultural Expectations on investment
decisions.As per the view point of Kaur and Kaushik (2016), personality traits as well as cultural
background is statistically of extreme importance. The need and achievement of certain objectives
were the key points that influenced the preference of investors. Further the risk taking capability of
the investor mainly influences the decision making i.e. the degree of risk that an investor is ready to
take while making investment decisions. The cultural norms of the society and the resources available
within a family are additional factors that further impact the decision-making. Based on the economic
differences of various countries, there is additional differentiation in the manner investors belonging
to different countries invest.However, Gupta, Mahakud and Debata (2018), contradicts that Culture
and Personality although are contributors in the decision making but they do not act as major
contributors. Factors like investment strategies, objective of investment, time period, returns

generated and frequency of investment are some of the key factors behind making investment
decisions. The security of the investment that is being made additionally impacts the decision making
rather that cultural or personality’s impact. The author further states that cultural aspect leads
clouding of the judgement and rationality of the decision making power of the investor making him
take decisions that might not give maximum profitability.Theme 2: Advantages and disadvantages of
the impact on decision making.Lucke and Eichler (2016), states that cultural aspect as well as
personality types have a very positive influence on the decision making regarding investment. The
profile of the investor and his risk taking ability helps in determining the investment tendency and
take those decisions that will give them maximum returns. These factors collectively categorized
under behavioural finance helps the investors in identifying which categories of investment will suit
their lifestyle and give them returns accordingly rather than taking economic factors only into
consideration. It also helps in recognizing the behaviour type or habit so that implementation of the
decisions taken can help in achieving the intended investment objectives.Another author Frino,
Lepone and Wright (2015), argues that investment decisions based on these aspects are often
irrational and does not give maximum yield or return to the investors. This involves biasness in the
decision making involving factors like overconfidence, ambiguity, lack of adequate knowledge etc.
that impacts the decision taken by the investors negatively because they tend to overestimate or
underestimate an investment decision based on their preference rather than adopting a rational and
justified approach. Further, cultural impacts also purports many disadvantages like constriction of
better investment avenues, unavailability of all the investment options etc.Theme 3: Strategies for
overcoming drawbacks of such cultural and personality impacts on investment decisions.According to
Ang, Cheng and Wu (2015), the best strategy to minimize the negative impact of behavioural finance
in decision making involves addressing the biasness that an investor has. The author states that rather
than sticking to what he thinks, an investor should collect and analyse opinions that are contrary to
his opinions so that he can conduct a critical evaluation. Further, instead of taking those investment
decisions that are being crowded, they should rather use their judgement and instinct in making
those investment decisions. Additionally, Petersen, Kushwaha and Kumar (2015), states that correct
identification of the risk taking capability and integrating it with personal objectives, an investor can
formulate rational investment decisions that will increase their profitability. Another major strategy
for making correct investment decisions is developing the correct mix of investments to be made so
that the categories which are more beneficial can be identified.
1.2. Research Aims, Questions, and / or Hypotheses
Outline the research aims, questions, and / or hypotheses to be addressed. Ensure the research aims, questions
and / or hypotheses reflect the research problem developed in the brief literature review.

Aim: To analyse the impact of characteristics of a person and cultural background on the decision
making and the investments made by them. Based on this aim and the research problem formulated,
I will address following research questions:Research Questions:What is the concept of personal
characteristics and cultural expectations?How such characteristics and expectations can impact the
decision making of investors?What are the potential advantages or drawbacks of this impact on
decision making?Which strategies can be recommended to meet out such drawbacks or challenges in
decision making?
1.3. Theoretical Framework
Outline the potential theory or theories you have considered to investigate the research problem.
Theoretical Framework based on the themes formulated in the literature review done by the
researcher will help him in identifying what are the appropriate models or theories that will assist him
in conducting his research (Rantala, 2015).I will use following theoretical framework for my research
i.e. Theory of behavioural finance under which the evolution of modern investment techniques and
options available with the investor will be discussed and then evaluated. It focuses on two major
issues i.e. reason why standard theories are no longer a viable option and role of behavioural finance
in bridging this gap between traditional theories and changing market. Theory of reasoned action and
theory of planned behaviour are two additional theories that I will be discussing in my research
project under which those factors that can be controlled are summed up with uncontrollable
variables of behaviour and their impact collectively on rational investment decision making. These
help in predicting the kind of decisions that will be taken by the investors and possible deviations can
be identified. These theories will help me in effectively meeting the objectives of the research that I
intend to carry out and will help in providing adequate reasoning so that meaningful interpretation
and conclusions can be made.
1.4. Research Methods
Describe the potential methods of research you have considered. For example, archival/library study, analysis of
existing data sets, laboratory/field research, use of quantitative or qualitative methods, etc.

Provide details of any resources identified as required to conduct this research. Such as, the
materials/equipment you intend to use (surveys, interviews, purchase of specialised datasets, space/lab hire
etc).
Research Methodology involves various tools and techniques that help the researcher in identifying
the correct tools and techniques required to be used for collection, analysis and interpretation of the
data to be used in the research. Research Philosophy: Philosophy basically helps in determining the
ideology that researcher will use in data collection. In this research, out of the two philosophies i.e.
interpretivism and positivism, I will use interpretivism approach which is used for conducting
qualitative research incorporating human behaviour and aspects which I need to study in my intended
research. This will help me in conducting my research based on behavioural finance and assist in
drawing meaningful conclusions related to human tendencies.Research Approach: Approach helps in
determination of the procedure or plan that the researcher intends to follow in order to collect the
required data and conduct proper analysis. There are two major approaches for research i.e.
inductive and deductive (Flick, 2015). In my research, I will implement inductive approach which is
used in qualitative research under which I will collect the required data and then interpret it
accordingly using appropriate theories and models for conducting my research. This will help me in
drawing relevant conclusions based on the objectives of my research.Research Methods: In order to
collect the relevant data, there are numerous methods available with the researcher so that research
can be co9nducted in a meaningful manner. For conducting present research, I will use questionnaire
method which I will use for collection of data from my respondents that I will select. I will also use
other literary mediums like case studies, Published journals, articles etc. so that I can gather
comprehensive data related to my topic.Data Collection: There are two major sources of data
collection i.e. primary and secondary. Primary sources involve direct data collection methods like
questionnaires which I will use in my research and secondary resources are also there like reference
to previous research papers published or case studies conducted and these too will be used by me in
order to conduct research related to my topic of behavioural; finance so that appropriate conclusions
can be drawn.Sampling: Sampling involves selection of a few respondents that will help in collection
of the relevant data and for this purpose I will select 30 investors belonging to different categories
and segments so that appropriate and unbiased analysis can be made and relevant conclusion and
interpretations can be formed regarding the research.Data Analysis: Based on Qualitative or
Quantitative research, the researcher conducts the analysis of the data that has been collected by him
(Silverman, 2016). For my research, I will use thematic analysis which involves pictorial representation
of the data collected using different figures and charts like bar graphs, pie charts etc. This will simplify
the process of data collection for me.Ethical Consideration: Ethical consideration involves declaration
on behalf of the researcher that he has not adopted any unethical means for conducting his research.
I will make my respondents fill a declaration form stating that they have not been coerced in any
manner to respond in a particular manner. Further I will declare that no biasness will be incorporated
on my behalf while conducting the research and I will give proper reference and citation to the
articles that I will use for my research.
1.5. Significance / Contribution of Research

Outline the justification for the research project based on the literature reviewed. I.e. outline what it is that we
currently do not know but will know after your study is completed, and why is it important to know this.
Describe what the research will add to the body of existing knowledge and the impact on the discipline.
This section should be used to demonstrate how your research aligns with the existing key research areas or
research strategic goals of the faculty/discipline to which you are applying.
The research that I will be conducting will help in determining what are the key impacts of different
personal characteristics and cultural expectations on the rationality of the decision making of
investors. This research is extremely significant for the present day investors looking for investment
options and methods. The emerging influence of behavioural finance in the decision making of
investors will be evaluated in this research paper and by reading this research paper, the investor will
be able to identify the scope and extent to which an investor should take his decisions based on the
personal traits and the cultural influences. This research will also help in developing insights related to
the various aspects that influence the decision making and identify their positive or negative impact
in the decision making behaviour of the investors. This will also help in determining the various
advantages and disadvantages of related to impact of personality and cultural traits in behavioural
finance. Lastly, the research will widen the scope within which the investors operate and help them in
providing a broader purview so that rationality of decisions can be improved.
5. Research Project Plan / Timeline
Provide an outline / plan of the stages of your research. This may include, but not limited to: ethics approval,
literature review, data collection, thesis writing. This is a draft plan for completion of tasks and activities aligned
to annual milestones of the degree.

6. References / Bibliography
Please provide one or both of the following in an appropriate and consistent referencing style:
a) A list of references cited in the research proposal
b) A bibliography of planned reading
Petersen, J.A., Kushwaha, T. and Kumar, V., 2015. Marketing communication strategies and consumer
financial decision making: The role of national culture. Journal of Marketing, 79(1). pp.44-63.Ang, J.S.,
Cheng, Y. and Wu, C., 2015. Trust, investment, and business contracting. Journal of Financial and
Quantitative Analysis, 50(3). pp.569-595.Frino, A., Lepone, G. and Wright, D., 2015. Investor
characteristics and the disposition effect. Pacific-Basin Finance Journal, 31. pp.1-12.Lucke, N. and